The Tracker will be surveying investors’ views on regulated AIFs every quarter – and, in
particular, will be examining their popularity in relation to the other available options open to them, such as: professional investor funds, alternative UCITS and traditional offshore funds.
In preparation for the launch of The Tracker IFI Global’s research department asked alternative managers what their investors think of the Directive. IFI Global interviewed 72 organisations with dedicated alternative assets of $197 billion, and an overall AUM of approximately $2.5 trillion. The majority of managers surveyed said that there is very little investor demand for regulated AIFs, to date. However others say the disclosure provisions in AIFMD are welcomed, particularly by northern European institutions.
A variable level of understanding on AIFMD was reported by managers of their investors. Approximately 30% said that the Directive has broadly been welcomed by investors. Those that are in this category suggested that institutional investors will increasingly require funds to be compliant with the Directive before considering making allocation. Other institutions have said that they intend to continue to go down the traditional offshore fund route.
But the majority of survey interviewees reported that investors that they have spoken to about AIFMD have yet to form an opinion on this topic. Interviewees were split on whether the increased regulatory costs will be passed on to investors. Approximately 35% of managers surveyed believe that investors will not allocate to those that attempt to pass on increases in their regulatory costs.
There was a widespread concern, expressed by many boutique managers, that investors will perceive regulated AIFs as being safer than offshore funds and will not do the requisite level of due diligence as a result. For example through its extensive reporting requirements AIFMD allows risk management respectability to be bestowed on a number of manager organisations that does not appear to be justified. Many investors may not understand this, it was suggested.
Harmonic Fund Services
Jason Bechard – Senior Fund Accountant
T: +353 1 440 7362
jason.bechard@harmonic.ky
www.harmonicfundservices.com
IQ-EQ
Know how Know you
Sherizia Razzaque, Group Marketing Lead, Segments,
T: +230 213 8917
Sherizia.Razzaque@iqeq.com
Justin Partington, Group Head of Funds,
T: +352 466111 3852
justin.partington@iqeq.com
https://iqeq.com
JTC Fund Services
Kobus Cronje, Managing Director – Guernsey
T: +44 1481 704 745
Kobus.Cronje@jtcgroup.com
www.jtcgroup.com
Prescient Fund Services
Irish regulated, independent Fund Administration
Hayden Reinders, Head of Business Development and Client Management
T: +27 21 700 5363
hayden.reinders@prescient.co.za
www.prescient.co.za
C3 Post Trade Limited
Your Single Window to Operational Efficiency
Luke Spencer-Wilson, Head of Relationship Management
T: 07887 647769
lsw@c3posttrade.com
www.c3posttrade.com
FM Consult
Fleming McGillivray & Co. Compliance Solutions
Dallas J. McGillivray, Managing Director
T: +44 (0)20 7220 9073
dmgillivray@fmconsult.co.uk
www.fmconsult.co.uk
Fuchs Asset Management
Timothe Fuchs, CEO
T: +352 26 26 49 39
timothe.fuchs@fuchsgroup.com
www.fuchsgroup.com
IQ-EQ
Know how Know you
Sherizia Razzaque, Group Marketing Lead, Segments,
T: +230 213 8917
Sherizia.Razzaque@iqeq.com
Justin Partington, Group Head of Funds,
T: +352 466111 3852
justin.partington@iqeq.com
https://iqeq.com
JTC Global AIFM Solutions S.A
Louis Lamotte, Managing Director, JTC Global AIFM Solutions S.A
T: +352 27 17 28 43
Louis.Lamotte@jtcgroup.com
www.jtcgroup.com
ONE
Steve Bernat, Founding Partner
T: +352 661 787 803
steve.bernat@one-gs.com
www.one-gs.com/
Prescient Fund Services
UCITS and AIFMD ManCo and Platform Services
Hayden Reinders, Head of Business Development and Client Management
T: +27 21 700 5363
hayden.reinders@prescient.co.za
www.prescient.co.za
MJ Hudson Quantitative Solutions
Risk reporting
Max Hilton, Managing Director
T: +44 (0)1481 231815
info@clarusrisk.com
www.clarusrisk.com
RiskSystem
Risk Management Solutions
Simon O'Sullivan,
T: +353 1 551 4471
simon.osullivan@risksystem.com
www.risksystem.com